Common use of Pre-Fund Clause in Contracts

Pre-Fund. In the event you are not approved for a Credit Limit, you may be approved to initiate credit entries on a pre- funded (“Pre-Funded”) basis. Under this option, before we transmit Credit Entries to Receivers, your designated deposit account must have sufficient Available Funds to cover the amount of those Credit Entries. We are not obligated to contact you if nonsufficient funds exist. However, if contacted, you agree to immediately deposit readily available funds to cover the transaction. If we elect to release or process a file(s) against nonsufficient funds, we are under no obligation to release subsequent files against nonsufficient funds. We will utilize the Presentment Date for settlement and will debit funds or place a hold on your designated account on the day Entries are received. You must present Credit Entries to us before the cutoff time not less than two Business Days prior to the Effective Settlement Date of such Credit Entries.

Pre-Fund. In the event you are not approved for a Credit Limit, you may be approved to initiate credit entries on a pre- pre-funded (“Pre-Funded”) basis. Under this option, before we transmit Credit Entries to Receivers, your designated deposit account must have sufficient Available Funds to cover the amount of those Credit Entries. We are not obligated to contact you if nonsufficient funds exist. However, if contacted, you agree to immediately deposit readily available funds to cover the transaction. If we elect to release or process a file(s) against nonsufficient funds, we are under no obligation to release subsequent files against nonsufficient funds. We will utilize the Presentment Date for settlement and will debit funds or place a hold on your designated account on the day Entries are received. You must present Credit Entries to us before the cutoff time not less than two Business Days prior to the Effective Settlement Date of such Credit Entries.